Labour Minister Issues New Regulation: Professions Still Allowed for Outsourcing

Jakarta, CNBC Indonesia - The government has issued Ministry of Manpower Regulation No. 7/2026 on Outsourcing Work as the basis for new rules on outsourcing employment. Labour Minister Yassierli stated that this regulation was released on Labour Day, 1 May 2026, as the government’s effort to ensure that outsourcing practices operate more fairly and provide clear protection for workers. “This Minister of Manpower Regulation is a follow-up to the Constitutional Court Decision No. 168/PUU-XXI/2023, which mandates restrictions on outsourcing work. The policy aims to provide legal certainty, strengthen the protection of workers’ rights, and maintain business continuity,” said Labour Minister Yassierli in a press release from the Ministry of Manpower’s Public Relations Bureau on Thursday (30/4/2026). Under this regulation, the types of outsourcing work are strictly limited to certain fields, namely cleaning services, food and beverage provision, security, provision of drivers and worker transport, operational support services, and support work in the mining, oil, gas, and electricity sectors. In addition, user companies that outsource part of their work to outsourcing companies must have a written agreement. That agreement must at least include the type of work outsourced, duration, work location, number of workers, work protection, and the rights and obligations of the parties. Outsourcing companies are also required to fulfil all workers’ rights in accordance with applicable laws and regulations, including wages, overtime pay, working hours and rest, annual leave, occupational safety and health (K3), health and employment social security, religious holiday allowances, and rights regarding termination of employment (PHK). The Labour Minister stated that this Minister of Manpower Regulation also regulates sanctions for user companies and outsourcing companies that do not comply with the established provisions.